Part 1

SUPPLEMENT

LineNo.

USSGLAcct. USSGL Account Title Begin/End Fed/NonFed Fund Type Reporting Type Code DOD GTAS FR 

2.400 255,289,848,855.52 255,300,000,000.00 59,2.4012.401 152100 Inventory Purchased for Resale E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 60,836,966,470.33 61,900,000,000.00 2.4022.402 152200 Inventory Held in Reserve for Future Sale E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 1,040,210,453.33 0.00 2.4032.403 151400 Operating Materials and Supplies Held for Repair E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 88,060,007,449.58 88,100,000,000.00 1,2.403 152300 Inventory Held for Repair E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.4042.404 152400 Inventory - Excess, Obsolete, and Unserviceable E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 1,087,152,827.50 1,100,000,000.00 2.4052.405 151100 Operating Materials and Supplies Held for Use E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 90,641,359,869.69 105,000,000,000.00 3,2.4062.406 151200 Operating Materials and Supplies Held in Reserve for Future Use

E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 14,343,612,522.97 0.00 

2.4072.407 151300 Operating Materials and Supplies - Excess, Obsolete, and 

Unserviceable E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 2,149,565,586.78 2,100,000,000.00 

2.4082.408 157100 Stockpile Materials Held in Reserve E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 1,148,588,173.60 1,100,000,000.00 47,2.4092.409 157200 Stockpile Materials Held for Sale E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 4,245,676.53 0.00 5,2.4102.410 154100 Forfeited Property Held for Sale E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 0.00 2.410 154200 Forfeited Property Held for Donation or Use E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.4112.411 152500 Inventory - Raw Materials E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U 2,344,847,750.27 2,400,000,000.00 1,2.411 152600 Inventory - Work-in-Process E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.411 152700 Inventory - Finished Goods E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.411 156100 Commodities Held Under Price Support and Stabilization Support 

Programs E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U

2.411 159100 Other Related Property E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.4122.412 151900 Operating Materials and Supplies - Allowance E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U -6,366,707,925.06 -6,400,000,000.00 -2.412 152900 Inventory - Allowance E CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.412 154900 Forfeited Property - Allowance E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.412 156900 Commodities - Allowance E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U2.412 159900 Other Related Property - Allowance E N CF/DF/EC/EG/EM/EP/ER/ES/ET/GA/TR/UG/US/UT E/U

Inventory held in reserve for future sale to the public 

USSGL Crosswalk - Reclassified Balance Sheet

Inventories and related property, netThis lines is calculated. Equals Sum of line 2.401 through 2.412Inventory purchased for resaleInventory and operating materials and supplies held for repaircInventory – excess, obsolete, and unserviceableOperating materials and supplies held for useOperating materials and supplies held in reserve for future useOperating materials and supplies excess, obsolete, and unserviceableStockpile materialsStockpile materials held for saleForfeited propertyOther related propertyTotal allowance for inventories and related property

Bulletin No. 2016-07 VI RBS - 1 

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 NOTES TO THE FINANCIAL STATEMENTS 85

Note 5. Inventories and Related Property, Net

Inventories and Related Property, Net as of September 30, 2016, and 2015

Defense

 

All 

Others Total Defense

 

All 

Others Total

(In billions of dollars) 2016 2015

Inventory purchased for resale ...................................... 61.9 0.5 62.4 61.3 0.4 61.7

Inventory and operating material and supplies held 

for repair............................................................................. 88.1 1.2 89.3 79.6 1.5 81.1

Inventory—excess, obsolete, and unserviceable ....... 1.1 - 1.1 1.4 - 1.4

Operating materials and supplies held for use ............ 105.0 3.5 108.5 121.9 3.5 125.4

Operating materials and supplies held in reserve for 

future use .......................................................................... - 0.2 0.2 - 0.2 0.2

Operating materials and supplies-excess, obsolete, 

and unserviceable ........................................................... 2.1 - 2.1 2.0 - 2.0

Stockpile materials held in reserve for future use........ 1.1 47.3 48.4 0.4 52.8 53.2

Stockpile materials held for sale ................................... - 5.6 5.6 - - -

Other related property ..................................................... 2.4 1.2 3.6 1.5 1.1 2.6

Allowance for loss ........................................................... (6.4) (0.5) (6.9) (6.4) (0.6) (7.0)

Total inventories and related property, net................. 255.3 59.0 314.3 261.7 58.9 320.6

Inventory purchased for resale is the cost or value of tangible personal property purchased by an agency for resale. As 

of September 30, 2016, DOD values approximately 98 percent of its resale inventory using the moving average cost (MAC) 

method. DOD reports the remaining 2 percent of resale inventories at an approximation of historical cost using LAC adjusted 

for holding gains and losses. The LAC method is used because DOD’s legacy inventory systems do not maintain historical 

cost data. DOD improved its capability to distinguish between held for use and held for repair for operating materials and 

supplies which resulted in an increase for inventory and operating material and supplies held for repair, and a decrease for 

operating materials and supplies held for use for fiscal year 2016. Please refer to the individual financial statements of DOD

for significant detailed information regarding its inventories.

Inventory and operating materials and supplies held for repair are damaged inventory that require repair to make them 

suitable for sale (inventory) or is more economical to repair than to dispose of (operating materials and supplies). Excess, 

obsolete, and unserviceable inventory is reported at net realizable value. Inventory—excess, obsolete, and unserviceable 

consists of:

x Excess inventory that exceeds the demand expected in the normal course of operations and which does not meet 

management’s criteria to be held in reserve for future sale.

x Obsolete inventory that is no longer needed due to changes in technology, laws, customs, or operations.

x Unserviceable inventory that is damaged beyond economic repair.

Operating materials and supplies held for use are tangible personal property to be consumed in normal operations.

Operating materials and supplies held in reserve for future use are materials retained because they are not readily 

available in the market or because they will not be used in the normal course of operations, but there is more than a remote 

chance they will eventually be needed. DOD, which accounts for most of the reported operating materials and supplies held 

for use, uses LAC and MAC, and expenses a significant amount when purchased instead of when consumed.

Operating materials and supplies—excess, obsolete, and unserviceable consists of:

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